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ANALYSIS OF BARRIERS OF SOCIAL MEDIA USE AND REMEDIES FOR B2B

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Assignment -2


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Introduction

As it is already discussed that social media has relevance for the users for communication and

there are many companies that show their presence on social media sites. There are lots of

spending on social sites are taking place. But the popularity of the social networking sites and

their roles are not explored completely in terms of B2B or business transactions. In this

regard, it is also identified that B2B transaction are three and half times more valued than

B2C commercial transaction but B2B organizations are not willing to show their presence on

social media sites. The hypotheses that are developed to further explore the subject are

mentioned. The key words that are developed here are mentioned

Cost to marketing of products and services to customers

Relevance of social media as a marketing tool for brand building and market

expansion

Barriers that companies perceive for using the social sites as marketing tool

Social media sites relevance in smooth transaction and prompt customer service.

Further hypothesis regarding key words are formulated.

Hypotheses

The first key word reflect that companies are not willing to adopt the social media sites for

promotion of the products and services is due to cost factor and it is assumed that the cost to

promote products and services is not feasible in terms of return companies are obtaining. So


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the hypothesis for the first keyword is cost to promote business on social media sites is more

costly for companies. The second key word that considers the relevance of social media tool

for brand building and market expansion reflects this hypothesis that companies are not

aware of relevance of social media sites for brand building and market expansion. The third

key word barriers to promote business on social media sites develops hypothesis that legal

barrier, negative perceptions of management, lack of familiarity and training are responsible

for slow growth in adopting social sites for promotion of business. The key word social

media sites are relevant for smooth transaction and prompt customer service is examined and

hypothesis is formulated that questions the ability of social media sites to provide smooth

transaction and prompt customer services.

Cost to promote business on social media sites is not affordable by companies.

Unawareness of companies to understand the relevance of social media sites for brand

building and market expansion

Many barriers that prohibit companies to use social media sites

Inability of social medial sites to provide better customer service and smooth

transaction

Topic one

Cost to promote business on social media sites is not affordable by companies.

This hypothesis is further analysed and explored by conducting secondary and primary

research. The available literature is assessed and analyzed. The literature survey reveals that


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the cost to social media sites for promotion of products and services is pretty low and

provides easy accessibility with the customers (Conley, 2014). Advertising is believed to be

cost effective on social media sites than other traditional media and it can offer the free

publicity to the companies (Todi, 2008). There are many viral marketing campaigns that can

be available on You Tube and Face book. The big sites such as Face book, MySpace and

You Tube are having reach, prominence, data and these features of the sites make them cost

effective for conducting business over there. The reach and frequency are the prime factor for

understanding the cost effectiveness of any media vehicle. The reach and frequency

determine that the cost per reach of target audience will be effective or not. Fortunately the

big sites are offering a wide reach for companies to market products to customers. All these

factors make the advertising on the social media sites quite effective. When reach and

frequency are considered, it is found that social media and its popularity assisted to

revolutionize the marketing practices such as advertising and promotion ( Trusov, Bucklin &

Pauwels, 2009) and this fact has increased its reach capacity. Social media is helpful in

creating relationship with customer at low cost ( Kaplan & Haenlein, 2010). The social media

can help companies to target likeminded people as social media is found helpful in affecting

and influencing the attitude, perceptions and behaviour of people (Williams & Cothrell,

2000) and bringing likeminded people together (Hagel & Armstrong, 1997).

The factor of perceived value and easy of using a new technology also adds cost effectiveness

of using that particular technology for business purposes. The technology adoption model

(TAM) is used here to understand the relevance of social media and it is found in researches

that TAM is successfully applied for internet related technologies such as internet banking


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(Suh & Han, 2002; Gefen at al., 2003; Chau, 1996) and this is a requirement for B2B smooth

business transaction.

All these factors add cost efficiency in using social media sites for promotion of products and

services.

A survey is conducted among chosen B2B companies’ people and questionnaire is

developed. The questionnaire consists of questions that are mentioned below

Do you think the cost factor is preventing organization to promote business through

social media?

What are the other factors that are more important than the cost to promote business

on social media?

Do you think that lack of measurement tool about the impact of social media and

absence of ROI tool to correctly assess the return of social media use are important

factor for ignorance of social media?

Do you think that company management has a positive perception regarding the cost

effectiveness of social media in promotion of products?

Do you think management has the ability to identify target audience through social

media use?

The answers obtained from the sample are showing that cost to promote products holds less

importance as the cost is less than the traditional media. The other important factors such as

measuring the cost effectiveness procedure, identifying target audiences are more crucial for

choosing internet to promote products and services among B2B companies.


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Overall the cost factor does not hold much importance but reach, frequency, circulation,

target audience identification, measurement tools for assessing the impact of social media are

more significant to promote products and services.

Topic two: Unawareness of companies to understand the relevance of social media

sites for brand building and market expansion

The business to business organization faced a lot of difficulties for creation and measurement

of the B2B marketing campaigns on social media sites. Also it is revealed that many B2B

companies are not aware of the significance of the social media uses and its applicability to

business goals (Cooke, 2014). This lack of awareness is proved by these figures. According

to a survey, there was less than 12 percent of organization having full time social media

teams to promote business on social network sites. Only 19 percent of the organizations had

appointed head of social media and only 50 percent of companies have individuals to take

care of social media duties (PWC, 2011). These findings suggest that the awareness among

companies about social media significance is not assimilated and there was not much effort

by organizations to enhance the awareness regarding social media role in brand building and

market expansion. In this regard, organisational structure setting is very important and it was

identified that 58 percent of organization did not have supporting structure for promoting

products and services on social media (PWC, 2011). The culture of organization also

encourages or discourages use of social media. The report finding was bleak in this regard

and only 40 percent respondents said that basic rules and education were provided to staff

(PWC, 2011). Only 19 percent of respondents said that the workforce was able to engage


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customers through social media use. The leadership is crucial to familiarise with social media

relevance for brand building but the survey revealed that only 39 percent of respondents

stated active roles of leaders in exploring social media use and only 21 percent respondents

said that their leaders were able to understand social media value for their organizations and

engaged in social media activity (PWC, 2011). The tools and technology used by the

organizations reflected that 70 percent of organisations used social media tools and

technology and almost 50 percent of the respondents were using the social media tools and

technology for monitoring the impact of social media on their company’s brand and

managing better customer interaction (PWC, 2011). The unawareness to measure the benefits

of social media presents a dismal performance by organizations. 36 percent of respondents in

survey were not involved in measuring the returns of social media and only 10 percent

respondents were using basic qualitative measures (PWC, 2011). The overall maturity to

embrace social media by B2B organization is found quite low.

The sample chosen was asked some pertinent questions that are mentioned below

Do you think that leadership style is supportive for promotion of products on social

media sites?

Do you think that organizational culture is assisting to promote social media sites use

for promotion of products and services?

Does your organization have a separate department to take care of promotion of

products and services through social media?

What is your opinion regarding the use of tools and technology in your organization

for social media sites?


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The results obtained from the questionnaire found the similar results regarding the use of

social media and many respondents said that culture, leadership, tools and technology to

access social media sites were not conducive. There are only very few respondents said that

there was a department to promote business online.

The hypothesis is proved correct here and it is important reason why the B2B companies are

not willing to conduct business online.

Topic three: Many barriers that prohibit companies to use social media sites

There are many barriers that come against using the social media sites for the B2B

companies. The unfamiliarity because of lack of research about the potentiality of social

media to promote B2B business is a main reason among B2B companies. This can be

understood by a report that most companies had no strategy for social media to generate leads

(Jenson, 2012). Many were unclear of the value of social media. In previous reports, it is

found that B2B organizations were slow to adopt new technologies because of many

perceived barriers such as time and training requirement, lack of money, negative thoughts of

people about the usability of social sites and unfamiliarity with technologies (Buehrer,

Senecal & Bolman Pullins, 2005, Venkatesh & Davis, 2000). The barrier of maintaining the

website is another issue that was found before and after creating website (Verisign, n.d.).

Security of website is also a concerned of companies. There are many other barriers found

such as lack of training, lack of knowledge, distraction from the core business activities, and

impersonal nature of social site (Jkconsultancy, 2013).

The sample drawn has been asked few questions regarding the barriers to use social media.


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Do you think that lack of knowledge regarding creating website and maintenance

hindering organization to use social media sites?

Does negative thoughts of people regarding the use of social media for business

promotion acts as a barrier?

Do you think that need of training for people to run website and use it causes

hindrance for social media use?

Do you think that impersonal nature of social media prevents companies to use it?

The answers of respondents reveal that all these factors are shaping their perceptions to use

social media. These factors are responsible for low use of social media in B2B companies.

The hypothesis formed here is proved correct once again and it is found an important factor

for preventing B2B companies to use social media sites.

Topic four: Inability of social medial sites to provide better customer service and

smooth transaction

The literature survey reveals that firms use social media for building direct relationship with

customers, increasing traffic to website, creating communities, identifying new business

opportunities, collecting feedback from customers and supporting their brands (Breslauer &

Smith, 2009; emarketer 2010). Social networking sites initiate two way conversations with

the customers and develop good relationship with them (Enders et al, 2008; Kaplen &

Haenlein, 2010). This is very important for providing better customer service as the correct

feedback from customers can enhance the value of products and service and companies can

offer the customized products and services. Social media website provides opportunities for

companies to interact with potential customers and increase the intimacy with customers


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(Mersey, Malthouse, &Calder, 2010). The services become better for customers by tapping

significant information that creates prompt response for customers. The business transactions

perform better because customer requirements are understood in real time and there is direct

engagement of customers (PWC, 2011).

The sample drawn for survey was asked few relevant questions that are listed below

Do you think that social media sites are able to build good customer relationship with

customer to assist organization to provide better and customized services for

customers?

Do you think that relevant data capturing ability of social media sites help company to

make business transactions smooth and results in better cost saving?

Do you think interactive ability of social media can identify the target customers and

provide them better service?

The answers of respondents explain that social media sites are efficient in providing better

service to customer by having regular interaction with them and making smooth business

transaction due to its abilities to capture relevant data that helps to adjust business

transactions according to customer needs.

All these factors contradict the hypothesis formed that social media sites have inabilities to

provide better customer service to customers and better business transactions.

Conclusion

The conclusion is that among four hypotheses, two hypotheses are found correct and two are

incorrect. The hypotheses such as lack of familiarity with social media use to promote


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business and many barriers to prevent use of it are found responsible for low use of social

media among B2B companies. For mitigating the issues, training to employees and people,

leadership orientation towards promoting social media sites use for business, creation of

separate department for promoting business on social networking sites, supportive

organization structure and culture, availability of tools and technology for social media

access, solution of privacy and security issues, addressing perceptual barriers of people

regarding social media sites uses for business purpose must be considered. All these factors

contribute to the failure in optimum use of social media for business promotion. So it is

recommended that all these factors must be addressed properly by the B2B companies to

enhance the social networking sites use for business promotion and brand building.

.


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References

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http://www.firstmonday.org/ojs/index.php/fm/article/view/2889/2685#author

Cooke Russel, (2014). B2B Marketing: Dominate Your Niche with Social Media. Retrieved

from

http://www.ronsela.com/b2b-marketing-social-media/

Conley Megan, (2014). A Beginner’s Social Media Guide for Small Businesses. Retrieved

from

http://www.socialmediaexaminer.com/social-media-guide-small-businesses/

Hagel, J., & Armstrong, A. G. (1997). Net gain: Expanding markets through virtual communities. Boston, MA: Harvard Business School Press.

Jensen Sylvia , (2012). How Do B2B Companies Use Social Media? [Infographic]. Retrieved

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JKConsultancy, (2013). The barriers and benefits of social media with micro-businesses.

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http://unbounce.com/author/sylvia-jensen/

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http://www.ronsela.com/b2b-marketing-social-media/

http://www.firstmonday.org/ojs/index.php/fm/article/view/2889/2685#author


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http://www.businesszone.co.uk/blogs/jkconsultancy/king039s-content/barriers-and-benefits-social-media-micro-businesses

Kaplan, A. M., & Haenlein, M. (2010). Users of the world, unite! The challenges and opportunities of social media. Business Horizons, 53, 59-68. http://dx.doi.org/10.1016/j.bushor.2009.09.003

Mersey, R. D., Malthouse, E. C., & Calder, B. J. (2010). Engagement with Online Media. Journal of Media Business Studies, 7(2), 39-56.

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http://dx.doi.org/10.1016/j.bushor.2009.09.003




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